2 Top TSX Tech Stocks to Buy Right Now

Chris MacDonald
·3 min read
tech and analysis

Investors looking for some of the best technology plays on the TSX have come to the right place.

Indeed, these two companies are among the best growth plays in Canada right now. Both have proven track records, and will continue to provide excellent results for long-term investors.

For those with long-term investment horizons, these are the top two companies I’d invite growth investors to consider today.

Constellation Software

Constellation Software (TSX:CSU) has been an incredible growth story. Indeed, shares of this company have skyrocketed more than 200% over the past five years. For investors putting even a small amount of money to work, the capital appreciation with this stock speaks volumes.

How has the company provided this growth?

Well, Constellation Software’s growth-by-acquisition strategy has been key in this regard. The company has been a large consolidator of the fragmented software market in North America. Furthermore, Constellation’s management team has been extremely efficient in acquiring the best companies that have the ability to bolster the company’s top line and solidify long-term growth.

There remain thousands of small-cap organizations in the software space that are there for the taking. Indeed, Constellation has shown its eagerness in scooping these companies up and adding them to its portfolio. The company’s track record of value creation with these acquisitions is equally impressive. The company doesn’t just acquire smaller companies; it’s able to improve its returns along the way.

That’s a very good thing for long-term growth investors in such growth-by-acquisition plays.

Shopify

There’s no greater growth stock in Canada right now than Shopify (TSX:SHOP)(NYSE:SHOP). Indeed, Shopify stock costs a fortune. However, investors are willing to pay this premium for a reason.

Shopify’s been one of the best e-commerce plays Canada has ever seen. And with Cathie Woods recently throwing her support behind Shopify, calling it the next Amazon, investors are taking note.

Indeed, any company put in the same growth realm as Amazon is one to consider. For investors with a long-term investing time horizon, this company remains one that should be on the top of the list.

E-commerce growth isn’t likely to slow any time soon. Shopify remains the top option for small- and medium-sized retailers to shift to online sales. With the mass transition toward e-commerce continuing to pick up steam, I think Shopify is positioned for decades of growth. Indeed, investors who are paying the premium for Shopify stock today are banking on it.

The post 2 Top TSX Tech Stocks to Buy Right Now appeared first on The Motley Fool Canada.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Chris MacDonald has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Amazon, Constellation Software, Shopify, and Shopify and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

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